Annual inflation in Israel slows to 1.6%

SadaNews Economy Translation - The consumer price index in Israel remained unchanged in June compared to May of the same year, leading to a decrease in inflation to 1.6%.

However, no further interest rate cuts are expected soon. This was reported by the Hebrew economic newspaper Globes, as translated by the SadaNews Economy Department.

Notable declines were recorded in the following categories: fresh vegetables and fruits by 5.2%, clothing and footwear by 2.7%, transportation by 0.7%, and furniture and household equipment by 0.5%.

In contrast, price increases were noted in the following categories: culture and entertainment by 1.0%, housing by 0.7%, health by 0.6%, and food by 0.4%.

In the real estate market, rents for tenants renewing their contracts increased by 2.6%, and rents for new tenants (apartments in the sample that experienced tenant changes) rose by 6.6%.

The prices of apartments recorded their largest monthly decline in the past eight years, according to data from the Central Bureau of Statistics regarding the apartment price index, which fell by 1% in April and May, compared to the monthly index in March and April.

In Tel Aviv, a sharp decline of 2.3% was recorded, while in Jerusalem, the decline reached 1.8%, with both being significant areas contributing to this drop.

The index recorded a 2% decline year-on-year, similar to the declines recorded in 2018 and 2023.

On the other hand, the index of new home prices rose by 0.1% in the month under review, but it decreased by 3.9% year-on-year.